UK officials have long lauded themselves for being among the staunchest supporters of Ukraine in its war against Russia. But the forcible closure of bank accounts that are owned by businesses trading with Ukrainian counterparts has prompted a good deal of anger aimed at the British state.
Bank accounts of businesses trading with Ukraine are in danger of being shut down because the war has made it difficult to discern between Ukrainian and Russian financial activity. Concerns are high that sanctions against Russia may in fact facilitate money laundering, according to a report in Politico.
The publication has seen a letter sent to Treasury Minister Andrew Griffith from the British-Ukrainian Chamber of Commerce (BUCC) Co-Chair, Bate Toms, who said that the risk of de-banking means British companies are increasingly “afraid to trade with Ukraine from the UK.” This, sent in July, added that multiple firms have complained about their banks being closed, or attempts to set up new accounts rejected, due to business dealings with Ukraine.
Mr. Toms noted that “conducting even one Ukrainian transaction can lead to an account being closed … UK banks generally refuse to open accounts if any Ukrainian trade is contemplated.” He is requesting that a review into de-banking, following the recent Coutts-Farage scandal, should also include an investigation of accounts dealing with Ukraine.
Nicholas Vinocur, editor-at-large of Politico Europe, described the treatment of such bank accounts as a “disgrace,” while others extrapolated that Britain is not being properly supportive of Ukraine.
One social media user joked ironically that “we [Ukraine] feel the support” while another suggested that “somehow we’re the ones getting sanctioned instead of Russia,” despite a whole host of UK sanctions relating to Russia.
This effective all-or-nothing response is reminiscent of the Ukrainian response to Poland’s import ban on Ukrainian grain, prompted by strong national pressures.
Responding to Politico’s report, a government spokesperson insisted that “we continue to stand firm in our support for Ukraine, with significant military and humanitarian assistance.”
